OREANDA-NEWS. September 28, 2015. Fitch Ratings says Schlumberger Limited's announcement that it will not extend the offer to buy a 45.65% interest in Russia's Eurasia Drilling Company Limited (EDC) beyond the long-stop date of 30 September 2015 has no impact on EDC's 'BB'/Stable rating. Fitch has not included any upside from the sale of the minority stake to Schlumberger in EDC's rating since the potential transaction was announced in January 2015.

EDC's creditworthiness should benefit from greater transparency if the company remains public after 30 September 2015. On the other hand, there are risks that ongoing technological co-operation between EDC and Schlumberger will be limited and that EDC will have fewer opportunities to diversify its customer base in Russia without the support of Schlumberger.

In January-August 2015, EDC's horizontal metres drilled increased by 29% yoy, while the vertical footage declined 32% yoy, on weaker orders from PJSC LUKOIL, EDC's main customer. We incorporated lower 2015 onshore drilling volumes into our EDC's rating case and do not expect any pressure on EDC's ratings from 2015 operating results. At end-June 2015, EDC's cash balance of USD370m covered its total short-term debt of USD323m, and we estimate that the company will be able to maintain sufficient liquidity over the medium term.